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1. Company Snapshot

1.a. Company Description

Superior Industries International, Inc.designs, manufactures, and sells aluminum wheels to the original equipment manufacturers and aftermarket distributors in North America and Europe.The company supplies aluminum wheels to the automobile and light truck manufacturers.


It offers its products under the ATS, RIAL, ALUTEC, and ANZIO brand names.The company was founded in 1957 and is headquartered in Southfield, Michigan.

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1.b. Last Insights on SUP

Negative drivers behind Superior Industries International's recent performance include the receipt of a NYSE Continued Listing Standards Notice, which may lead to delisting if the company fails to regain compliance. Additionally, the company's recent earnings release was not available, but the notice from the NYSE suggests potential issues with its financial reporting or compliance.

1.c. Company Highlights

2. Superior Industries Battles Macro Headwinds Amid Restructuring Efforts

Superior Industries reported a mixed Q1 2025 performance, with net sales rising 1.9% year-over-year to $322 million, though value-added sales dipped slightly due to lower unit sales and unfavorable foreign exchange impacts. Adjusted EBITDA fell to $25 million, representing a 15% margin, down from $31 million and 18% in Q1 2024, as lower production volumes and metal pricing timing weighed on profitability. The company posted a significant net loss, with actual EPS of -1.40, far below the consensus estimate of -0.15, reflecting broader operational and macroeconomic challenges. Despite these headwinds, Superior generated $33 million in unlevered free cash flow, supported by improved working capital management.

Publication Date: May -12

📋 Highlights
  • Macroeconomic Challenges: Despite a tough environment, localization trends offer growth opportunities.
  • Revenue Loss: Lost 33% of expected 2025 revenue due to North American OEM contract shifts.
  • Financial Restructuring: Secured $70 million term loan commitment to delever and strengthen financial structure.
  • Financial Performance: Q1 net sales rose to $322 million, but adjusted EBITDA margin dropped to 15% from 18% YoY.
  • Localization Opportunities: Quoted 53 million lifetime wheels YTD, doubling prior year levels, driven by tariff pressures.

Operational Challenges andLocalization Opportunities

The company faced significant disruptions, including the loss of 33% of expected 2025 revenue due to sudden contract shifts by North American OEMs. However, management highlighted growing opportunities from tariff pressures, which are accelerating OEM localization efforts. Superior has quoted over 53 million lifetime wheels year-to-date, more than double the prior year's level. Its "local-for-local" production footprint in Mexico and Poland positions it well to capitalize on this trend, though near-term liquidity challenges and covenant uncertainties remain a concern.

Balance Sheet Restructuring and Strategic Initiatives

To address its financial strain, Superior secured a $70 million commitment from term loan lenders and is pursuing broader recapitalization efforts. This includes eliminating preferred equity, reducing debt, and strengthening its financial structure. While these steps aim to delever the balance sheet, the company still operates with a Net Debt/EBITDA ratio of 4.4, indicating elevated leverage. Management also suspended FY 2025 guidance, citing ongoing macroeconomic uncertainty and active discussions with lenders and preferred shareholders.

Valuation and Investor Outlook

At current prices, Superior trades at a P/E ratio of -0.3, reflecting its net loss position, while its P/B ratio of 1.89 suggests the market is pricing in some recovery expectations. The EV/EBITDA ratio of 4.63 indicates moderate valuation relative to earnings, though the company's negative free cash flow yield of -41.89% highlights its ongoing cash burn. Analysts expect modest revenue growth of 3.5% next year, but the stock remains sensitive to execution risks and macroeconomic stability.

3. NewsRoom

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Superior Industries International, Inc. Receives NYSE Delisting Notice

Jun -25

Source: businesswire.com

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Superior Industries International, Inc. Receives NYSE Notice

Jun -24

Source: businesswire.com

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Superior Industries International, Inc. Receives NYSE Continued Listing Standards Notice

Jun -05

Source: businesswire.com

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Superior Industries International, Inc. (SUP) Q1 2025 Earnings Call Transcript

May -12

Source: seekingalpha.com

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Superior Reports First Quarter 2025 Financial Results

May -12

Source: businesswire.com

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Superior Industries to Release First Quarter 2025 Financial Results and Host Conference Call

Apr -30

Source: businesswire.com

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Superior Industries International, Inc. (SUP) Q4 2024 Earnings Call Transcript

Mar -06

Source: seekingalpha.com

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NYSE to Commence Delisting Proceedings Against Spirit Airlines, Inc. (SAVE)

Nov -18

Source: businesswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.65%)

6. Segments

Aluminum Wheels

Expected Growth: 4.65%

Superior Industries International, Inc.'s 4.65% growth in Aluminum Wheels is driven by increasing demand for fuel-efficient vehicles, rising adoption of lightweight materials, and growing popularity of premium vehicles. Additionally, the company's focus on innovation, cost reduction, and strategic partnerships have contributed to its growth momentum.

7. Detailed Products

Aluminum Wheels

Superior Industries International, Inc. designs and manufactures aluminum wheels for the automotive industry, providing lightweight and durable solutions for passenger vehicles, trucks, and SUVs.

Steel Wheels

The company produces steel wheels for the automotive industry, offering a range of sizes, finishes, and configurations for passenger vehicles, trucks, and SUVs.

Wheel Finishing

Superior Industries International, Inc. provides wheel finishing services, including machining, welding, and coating, to enhance the appearance and durability of aluminum and steel wheels.

8. Superior Industries International, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Superior Industries International, Inc. is medium due to the presence of alternative wheel manufacturers in the market.

Bargaining Power Of Customers

The bargaining power of customers is low due to the company's strong brand reputation and limited switching options for customers.

Bargaining Power Of Suppliers

The bargaining power of suppliers is medium due to the presence of multiple suppliers in the market, but the company's large scale of operations gives it some negotiating power.

Threat Of New Entrants

The threat of new entrants is low due to the high capital requirements and regulatory barriers to entry in the automotive wheel manufacturing industry.

Intensity Of Rivalry

The intensity of rivalry is high due to the presence of several established players in the market, leading to intense competition and pricing pressure.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 79.21%
Debt Cost 13.45%
Equity Weight 20.79%
Equity Cost 21.12%
WACC 15.05%
Leverage 381.04%

11. Quality Control: Superior Industries International, Inc. passed 1 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
XPEL

A-Score: 4.6/10

Value: 4.1

Growth: 9.0

Quality: 7.9

Yield: 0.0

Momentum: 2.5

Volatility: 4.0

1-Year Total Return ->

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Stock-Card
Holley

A-Score: 4.0/10

Value: 6.8

Growth: 5.9

Quality: 2.6

Yield: 0.0

Momentum: 6.5

Volatility: 2.0

1-Year Total Return ->

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Stock-Card
American Axle

A-Score: 3.7/10

Value: 7.7

Growth: 4.0

Quality: 2.9

Yield: 0.0

Momentum: 4.0

Volatility: 3.7

1-Year Total Return ->

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Stock-Card
Stoneridge

A-Score: 3.2/10

Value: 7.6

Growth: 4.3

Quality: 2.6

Yield: 0.0

Momentum: 2.0

Volatility: 2.7

1-Year Total Return ->

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Stock-Card
Superior Industries International

A-Score: 3.1/10

Value: 10.0

Growth: 1.9

Quality: 4.4

Yield: 0.0

Momentum: 0.5

Volatility: 2.0

1-Year Total Return ->

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Stock-Card
Commercial Vehicle Group

A-Score: 2.6/10

Value: 9.1

Growth: 0.9

Quality: 2.9

Yield: 0.0

Momentum: 1.0

Volatility: 2.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

0.32$

Current Price

0.32$

Potential

-0.00%

Expected Cash-Flows